Whether you want a few solar panels or enough to offset your energy bill, you can reduce the total price by taking advantage of state and federal programs. This guide breaks down Iowa solar incentives and how much you can save by claiming them.
What Are the Iowa Solar Incentives?
Iowa’ has solar incentives for both residential units and businesses. If you’re tax-liable, there’s a good chance that at least one incentive exists to drive down your overall costs.
Net Metering
Net Metering is one of the most-cited solar power incentives available. While it isn’t unique to the state, Iowa’s Net Metering program is a major benefit for residents who want to lower their power bills, allowing them to earn credit for the excess energy their solar system produces. NorthWestern Energy has lobbied to end Net Metering in Iowa but has been unsuccessful thus far. The program will likely face further challenges in the future but is currently an important fixture for solar customers nationwide.
Investment Tax Credit
The Federal Solar Investment Tax Credit (ITC) is a 30% tax credit for individuals who install solar panels on their homes. The ITC is partially responsible for the solar industry’s rapid growth across the United States, helping thousands of citizens invest in renewable systems without breaking the bank.
Property Tax Exemption
The Iowa Property Tax Exemption for Buildings Using Renewable Energy grants a 10-year property tax exemption to certain buildings that use “non-fossil forms of energy generation equipment,” such as solar energy. Single-family homes qualify for a $20,000 exemption, while multi-family dwellings qualify for a $100,000 exemption.
What Is the USDA Rural Energy for America Program?
The USDA Rural Energy for America Program (REAP) is designed to help agricultural producers and small business owners purchase renewable energy improvements. Suppose you install renewable energy equipment, like solar panels, on your business. In that case, REAP program grants can cover up to 50% of the total system cost, up to a maximum system cost of $1 million.
Iowa residents may also qualify for incentive programs through a local solar installer like Purelight Power.
Are There Any Local Solar Power Incentives?
While there (typically) aren’t solar power incentives at a city level, working with a local solar installer in Iowa can help you get the best possible system for your home. Local solar companies will have a firm understanding of the climate and conditions your immediate area is subject to, which will help them guide you to a system large enough to meet your energy needs without breaking the bank. You might not be able to find anything specific for solar installations in Des Moines, but a reputable solar installer will do its best to get you the most affordable system possible.
At Purelight, we strive to do exactly that. Our solar experts craft efficient solar systems that leverage high-quality materials, adding value to our customers’ homes and backing our work with a 10-year workmanship guarantee. If you want to start saving on your energy bill, take our 30-second survey to see if you qualify for our $0 down solar program.
